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SASKATOON - Cameco Corp. (TSX:CCO) plans to buy a 70 per cent stake in the Kintyre uranium exploration project in Western Australia for US$346.5 million.

Cameco says it will operate the project, which was purchased through a joint venture with Mitsubishi Development Pty Ltd.

Mitsubishi acquired the remaining 30 per stake from Rio Tinto, pinning the overall price of the project at US$495 million.

Kintyre is estimated to host potential mineral deposits ranging from 62 to 80 million pounds of uranium, Cameco said.

Shares in Cameco, the world's largest uranium producer, traded at $42.50 on the TSX, up $1.02 or 2.5 per cent.

The Kintyre project is an ideal fit with Cameco's strategy to expand its base of uranium assets, says Cameco president and CEO Jerry Grandey.

"It adds potential for low-cost open pit production and further diversifies our uranium business geographically."